SAN JOSE, Calif., Aug. 18, 2021 /PRNewswire/ --
News Summary:
- Cisco ended fiscal 2021 strong with Q4 performance of
$13.1 billion in revenue (up 8% year
over year) and fiscal year revenue of $49.8
billion
- Double digit order growth across all customer markets and
geographies, including product order growth of 31% - strongest
year-over-year growth in over a decade
- Continued momentum in transforming our business delivering more
software and subscriptions - achieved $4
billion in software revenue in Q4 (an increase of 6% with
subscription revenue up 9% year over year) and $15 billion for the year (an increase of 7% with
subscription revenue up 15% year over year)
- Q4 Results:
-
- Revenue: $13.1
billion
-
- Increase of 8% year over year
- Earnings per Share: GAAP: $0.71; Non-GAAP: $0.84
-
- GAAP EPS increased 15% year over year
- Non-GAAP EPS increased 5% year over year
- FY 2021 Results:
-
- Revenue: $49.8
billion
-
- Increase of 1% year over year
- Earnings per Share: GAAP: $2.50; Non-GAAP: $3.22
-
- GAAP EPS decreased 5% year over year
- Non-GAAP EPS was flat year over year
- Q1 Guidance:
-
- Revenue: 7.5% to 9.5% growth year over year
- Earnings per Share: GAAP: $0.61 to $0.66;
Non-GAAP: $0.79 to $0.81
- FY 2022 Guidance:
-
- Revenue: 5% to 7% growth year over year
- Earnings per Share: GAAP: $2.72 to $2.84;
Non-GAAP: $3.38 to $3.45
Cisco today reported fourth quarter and fiscal year results for
the period ended July 31, 2021. Cisco reported fourth quarter
revenue of $13.1 billion, net income
on a generally accepted accounting principles (GAAP) basis of
$3.0 billion or $0.71 per share, and non-GAAP net income of
$3.6 billion or $0.84 per share.
"We continue to see great momentum in our business as customers
are looking to modernize their organizations for agility and
resiliency," said Chuck Robbins,
Chair and CEO of Cisco. "The demand for Cisco technology is strong
with our Q4 performance marking the highest product order growth in
over a decade. With the power of our portfolio, we are well
positioned to help our customers accelerate their digital
transformation and thrive in a hybrid world."
"We executed exceptionally well delivering strong results across
revenue, non-GAAP net income, non-GAAP EPS and record operating
cash flow," said Scott Herren, CFO
of Cisco. "Our performance reflects the impact of our investments
in high growth opportunities resulting in our strong product order
growth. As we continue to drive our business model transformation
to more recurring revenue, we now have built up over $30 billion in remaining performance
obligations."
Q4 GAAP
Results
|
|
|
|
Q4 FY
2021
|
|
Q4 FY
2020
|
|
Vs. Q4 FY
2020
|
Revenue
|
|
$
|
13.1
|
billion
|
|
$
|
12.2
|
billion
|
|
8%
|
Net Income
|
|
$
|
3.0
|
billion
|
|
$
|
2.6
|
billion
|
|
14%
|
Diluted Earnings per
Share (EPS)
|
|
$
|
0.71
|
|
|
$
|
0.62
|
|
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 Non-GAAP
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 FY
2021
|
|
Q4 FY
2020
|
|
Vs. Q4 FY
2020
|
Net Income
|
|
$
|
3.6
|
billion
|
|
$
|
3.4
|
billion
|
|
5%
|
EPS
|
|
$
|
0.84
|
|
|
$
|
0.80
|
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year GAAP
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY
2021
|
|
FY
2020
|
|
Vs. FY
2020
|
Revenue
|
|
$
|
49.8
|
billion
|
|
$
|
49.3
|
billion
|
|
1%
|
Net Income
|
|
$
|
10.6
|
billion
|
|
$
|
11.2
|
billion
|
|
(6)%
|
EPS
|
|
$
|
2.50
|
|
|
$
|
2.64
|
|
|
(5)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year
Non-GAAP Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY
2021
|
|
FY
2020
|
|
Vs. FY
2020
|
Net Income
|
|
$
|
13.6
|
billion
|
|
$
|
13.7
|
billion
|
|
—%
|
EPS
|
|
$
|
3.22
|
|
|
$
|
3.21
|
|
|
—%
|
Reconciliations between net income, EPS, and other measures on a
GAAP and non-GAAP basis are provided in the tables located in the
section entitled "Reconciliations of GAAP to non-GAAP
Measures."
Financial Summary
All comparative percentages are on a year-over-year basis
unless otherwise noted.
Q4 FY 2021 Highlights
Revenue -- Total revenue was $13.1 billion, up 8%, with product revenue up 10%
and service revenue up 3%. Revenue by geographic segment was:
Americas up 8%, EMEA up 6%, and APJC up 13%. Product revenue was
led by growth in Infrastructure Platforms, up 13% and Security, up
1%. Applications was down 1%.
Gross Margin -- On a GAAP basis, total gross
margin, product gross margin, and service gross margin were 63.6%,
62.7%, and 66.2%, respectively, as compared with 63.2%, 61.2%, and
68.7%, respectively, in the fourth quarter of fiscal 2020.
On a non-GAAP basis, total gross margin, product gross margin,
and service gross margin were 65.6%, 65.0%, and 67.4%,
respectively, as compared with 65.0%, 63.2%, and 69.8%,
respectively, in the fourth quarter of fiscal 2020.
Total gross margins by geographic segment were: 66.2% for the
Americas, 65.0% for EMEA and 64.4% for APJC.
Operating Expenses -- On a GAAP basis,
operating expenses were $4.8 billion,
up 8%, and were 36.3% of revenue. Non-GAAP operating expenses were
$4.2 billion, up 8%, and were 32.1%
of revenue.
Operating Income -- GAAP operating income was
$3.6 billion, up 10%, with GAAP
operating margin of 27.2%. Non-GAAP operating income was
$4.4 billion, up 10%, with non-GAAP
operating margin at 33.5%.
Provision for Income Taxes -- The GAAP tax
provision rate was 19.4%. The non-GAAP tax provision rate was
19.3%.
Net Income and EPS -- On a GAAP basis, net income
was $3.0 billion, an increase of 14%,
and EPS was $0.71, an increase of
15%. On a non-GAAP basis, net income was $3.6 billion, an increase of 5%, and EPS was
$0.84, an increase of 5%.
Cash Flow from Operating Activities --
$4.5 billion for the fourth quarter
of fiscal 2021, an increase of 18% compared with $3.8 billion for the fourth quarter of fiscal
2020.
FY 2021 Highlights
Revenue -- Total revenue was $49.8 billion, an increase of 1%.
Net Income and EPS -- On a GAAP basis, net income
was $10.6 billion, a decrease of 6%,
and EPS was $2.50, a decrease of 5%.
On a non-GAAP basis, net income was $13.6
billion, flat compared to fiscal 2020, and EPS was flat at
$3.22.
Cash Flow from Operating Activities --
$15.5 billion for fiscal 2021, flat
compared with fiscal 2020.
Balance Sheet and Other Financial Highlights
Cash and Cash Equivalents and Investments --
$24.5 billion at the end of the
fourth quarter of fiscal 2021, compared with $23.6 billion at the end of the third quarter of
fiscal 2021, and compared with $29.4
billion at the end of fiscal 2020.
Remaining Performance Obligations --
$30.9 billion, up 9% in total.
Product remaining performance obligations were up 18% and service
remaining performance obligations were up 3%.
Deferred Revenue -- $22.2
billion, up 8% in total, with deferred product revenue up
19%. Deferred service revenue was up 2%.
Capital Allocation -- In the fourth quarter of
fiscal 2021, we returned $2.4 billion
to stockholders through share buybacks and dividends. We declared
and paid a cash dividend of $0.37 per
common share, or $1.6 billion, and
repurchased approximately 15 million shares of common stock under
our stock repurchase program at an average price of $53.30 per share for an aggregate purchase price
of $791 million. The remaining
authorized amount for stock repurchases under the program is
$7.9 billion with no termination
date.
Acquisitions
In the fourth quarter of fiscal 2021, we closed the following
acquisitions:
- Slido s.r.o., a privately held company that provides an
audience interaction platform.
- Sedonasys Systems Ltd., a privately held company which offers
products that enable multi-vendor, multi-domain automation, and
software-defined networking.
- Kenna Security, Inc., a privately held cybersecurity company
that provides risk-based vulnerability management technology which
enables organizations to work cross-functionally to rapidly
identify, prioritize and remediate cyber risks.
- Involvio LLC, a privately held company that offers a suite of
education-focused products that help colleges and universities
improve student experience, engagement, and retention.
- Socio Labs, Inc., a privately held company that offers a modern
event technology platform designed to power the hybrid events of
the future.
Guidance
Cisco expects to achieve the following results for the first
quarter of fiscal 2022:
Q1 FY
2022
|
|
|
Revenue
|
|
7.5% to 9.5% growth
Y/Y
|
Non-GAAP gross margin
rate
|
|
63.5% -
64.5%
|
Non-GAAP operating
margin rate
|
|
31.5% -
32.5%
|
Non-GAAP
EPS
|
|
$0.79 -
$0.81
|
Cisco estimates that GAAP EPS will be $0.61 to $0.66 for
the first quarter of fiscal 2022.
Cisco expects to achieve the following results for fiscal
2022:
FY
2022
|
|
|
Revenue
|
|
5% to 7% growth
Y/Y
|
Non-GAAP
EPS
|
|
$3.38 -
$3.45
|
Cisco estimates that GAAP EPS will be $2.72 to $2.84 for
fiscal 2022.
Our Q1 FY 2022 and FY 2022 guidance assumes an effective tax
provision rate of 19% for GAAP and non-GAAP results.
A reconciliation between the Guidance on a GAAP and non-GAAP
basis is provided in the tables entitled "GAAP to non-GAAP
Guidance" located in the section entitled "Reconciliations of GAAP
to non-GAAP Measures."
Editor's Notes:
- Q4 fiscal year 2021 conference call to discuss Cisco's results
along with its guidance will be held on Wednesday, August 18, 2021 at 1:30 p.m. Pacific Time. Conference call number is
1-888-848-6507 (United States) or
1-212-519-0847 (international).
- Conference call replay will be available from 4:00 p.m. Pacific Time, August 18, 2021 to 4:00
p.m. Pacific Time, August 25,
2021 at 1-800-388-4923 (United
States) or 1-203-369-3800 (international). The replay will
also be available via webcast on the Cisco Investor Relations
website at https://investor.cisco.com.
- Additional information regarding Cisco's financials, as well as
a webcast of the conference call with visuals designed to guide
participants through the call, will be available at 1:30 p.m. Pacific Time, August 18, 2021. Text of the conference call's
prepared remarks will be available within 24 hours of completion of
the call. The webcast will include both the prepared remarks and
the question-and-answer session. This information, along with the
GAAP to non-GAAP reconciliation information, will be available on
the Cisco Investor Relations website at
https://investor.cisco.com.
CISCO SYSTEMS,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In millions,
except per-share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
July 31,
2021
|
|
July 25,
2020
|
|
July 31,
2021
|
|
July 25,
2020
|
REVENUE:
|
|
|
|
|
|
|
|
Product
|
$
|
9,716
|
|
|
$
|
8,832
|
|
|
$
|
36,014
|
|
|
$
|
35,978
|
|
Service
|
3,410
|
|
|
3,322
|
|
|
13,804
|
|
|
13,323
|
|
Total
revenue
|
13,126
|
|
|
12,154
|
|
|
49,818
|
|
|
49,301
|
|
COST OF
SALES:
|
|
|
|
|
|
|
|
Product
|
3,628
|
|
|
3,429
|
|
|
13,300
|
|
|
13,199
|
|
Service
|
1,154
|
|
|
1,041
|
|
|
4,624
|
|
|
4,419
|
|
Total cost of
sales
|
4,782
|
|
|
4,470
|
|
|
17,924
|
|
|
17,618
|
|
GROSS
MARGIN
|
8,344
|
|
|
7,684
|
|
|
31,894
|
|
|
31,683
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
Research and
development
|
1,713
|
|
|
1,565
|
|
|
6,549
|
|
|
6,347
|
|
Sales and
marketing
|
2,448
|
|
|
2,218
|
|
|
9,259
|
|
|
9,169
|
|
General and
administrative
|
521
|
|
|
494
|
|
|
2,152
|
|
|
1,925
|
|
Amortization of
purchased intangible assets
|
79
|
|
|
33
|
|
|
215
|
|
|
141
|
|
Restructuring and
other charges
|
8
|
|
|
127
|
|
|
886
|
|
|
481
|
|
Total operating
expenses
|
4,769
|
|
|
4,437
|
|
|
19,061
|
|
|
18,063
|
|
OPERATING
INCOME
|
3,575
|
|
|
3,247
|
|
|
12,833
|
|
|
13,620
|
|
Interest
income
|
130
|
|
|
187
|
|
|
618
|
|
|
920
|
|
Interest
expense
|
(98)
|
|
|
(119)
|
|
|
(434)
|
|
|
(585)
|
|
Other income (loss),
net
|
128
|
|
|
(9)
|
|
|
245
|
|
|
15
|
|
Interest and other
income (loss), net
|
160
|
|
|
59
|
|
|
429
|
|
|
350
|
|
INCOME BEFORE
PROVISION FOR INCOME TAXES
|
3,735
|
|
|
3,306
|
|
|
13,262
|
|
|
13,970
|
|
Provision for income
taxes
|
726
|
|
|
670
|
|
|
2,671
|
|
|
2,756
|
|
NET
INCOME
|
$
|
3,009
|
|
|
$
|
2,636
|
|
|
$
|
10,591
|
|
|
$
|
11,214
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.71
|
|
|
$
|
0.62
|
|
|
$
|
2.51
|
|
|
$
|
2.65
|
|
Diluted
|
$
|
0.71
|
|
|
$
|
0.62
|
|
|
$
|
2.50
|
|
|
$
|
2.64
|
|
Shares used in
per-share calculation:
|
|
|
|
|
|
|
|
Basic
|
4,216
|
|
|
4,227
|
|
|
4,222
|
|
|
4,236
|
|
Diluted
|
4,238
|
|
|
4,244
|
|
|
4,236
|
|
|
4,254
|
|
CISCO SYSTEMS,
INC.
|
REVENUE BY
SEGMENT
|
(In millions,
except percentages)
|
|
|
|
July 31,
2021
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
Amount
|
|
Y/Y%
|
|
Amount
|
|
Y/Y%
|
Revenue:
|
|
|
|
|
|
|
|
|
Americas
|
|
$
|
7,731
|
|
|
8%
|
|
$
|
29,161
|
|
|
—%
|
EMEA
|
|
3,297
|
|
|
6%
|
|
12,951
|
|
|
2%
|
APJC
|
|
2,098
|
|
|
13%
|
|
7,706
|
|
|
5%
|
Total
|
|
$
|
13,126
|
|
|
8%
|
|
$
|
49,818
|
|
|
1%
|
|
Amounts may not sum
and percentages may not recalculate due to rounding.
|
CISCO SYSTEMS,
INC.
|
GROSS MARGIN
PERCENTAGE BY SEGMENT
|
(In
percentages)
|
|
|
|
July 31,
2021
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
Gross Margin
Percentage:
|
|
|
|
|
Americas
|
|
66.2%
|
|
66.9%
|
EMEA
|
|
65.0%
|
|
65.4%
|
APJC
|
|
64.4%
|
|
64.2%
|
CISCO SYSTEMS,
INC.
|
REVENUE FOR GROUPS
OF SIMILAR PRODUCTS AND SERVICES
|
(In millions,
except percentages)
|
|
|
|
July 31,
2021
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
Amount
|
|
Y/Y %
|
|
Amount
|
|
Y/Y %
|
Revenue:
|
|
|
|
|
|
|
|
|
Infrastructure
Platforms
|
|
$
|
7,546
|
|
|
13%
|
|
$
|
27,109
|
|
|
—%
|
Applications
|
|
1,344
|
|
|
(1)%
|
|
5,504
|
|
|
(1)%
|
Security
|
|
823
|
|
|
1%
|
|
3,382
|
|
|
7%
|
Other
Products
|
|
4
|
|
|
(42)%
|
|
19
|
|
|
(43)%
|
Total
Product
|
|
9,716
|
|
|
10%
|
|
36,014
|
|
|
—%
|
Services
|
|
3,410
|
|
|
3%
|
|
13,804
|
|
|
4%
|
Total
|
|
$
|
13,126
|
|
|
8%
|
|
$
|
49,818
|
|
|
1%
|
|
Amounts may not sum
and percentages may not recalculate due to rounding.
|
CISCO SYSTEMS,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
millions)
|
(Unaudited)
|
|
|
July 31,
2021
|
|
July 25,
2020
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
9,175
|
|
|
$
|
11,809
|
|
Investments
|
15,343
|
|
|
17,610
|
|
Accounts receivable,
net of allowance for doubtful accounts of $109 at July 31, 2021 and $143 at
July 25, 2020
|
5,766
|
|
|
5,472
|
|
Inventories
|
1,559
|
|
|
1,282
|
|
Financing receivables,
net
|
4,380
|
|
|
5,051
|
|
Other current
assets
|
2,889
|
|
|
2,349
|
|
Total current
assets
|
39,112
|
|
|
43,573
|
|
Property and
equipment, net
|
2,338
|
|
|
2,453
|
|
Financing
receivables, net
|
4,884
|
|
|
5,714
|
|
Goodwill
|
38,168
|
|
|
33,806
|
|
Purchased intangible
assets, net
|
3,619
|
|
|
1,576
|
|
Deferred tax
assets
|
4,360
|
|
|
3,990
|
|
Other
assets
|
5,016
|
|
|
3,741
|
|
TOTAL
ASSETS
|
$
|
97,497
|
|
|
$
|
94,853
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
|
2,508
|
|
|
$
|
3,005
|
|
Accounts
payable
|
2,362
|
|
|
2,218
|
|
Income taxes
payable
|
801
|
|
|
839
|
|
Accrued
compensation
|
3,818
|
|
|
3,122
|
|
Deferred
revenue
|
12,148
|
|
|
11,406
|
|
Other current
liabilities
|
4,620
|
|
|
4,741
|
|
Total current
liabilities
|
26,257
|
|
|
25,331
|
|
Long-term
debt
|
9,018
|
|
|
11,578
|
|
Income taxes
payable
|
8,538
|
|
|
8,837
|
|
Deferred
revenue
|
10,016
|
|
|
9,040
|
|
Other long-term
liabilities
|
2,393
|
|
|
2,147
|
|
Total
liabilities
|
56,222
|
|
|
56,933
|
|
Total
equity
|
41,275
|
|
|
37,920
|
|
TOTAL LIABILITIES
AND EQUITY
|
$
|
97,497
|
|
|
$
|
94,853
|
|
CISCO SYSTEMS,
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
millions)
|
(Unaudited)
|
|
|
Fiscal Year
Ended
|
|
July 31,
2021
|
|
July 25,
2020
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
10,591
|
|
|
$
|
11,214
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation,
amortization, and other
|
1,862
|
|
|
1,808
|
|
Share-based
compensation expense
|
1,761
|
|
|
1,569
|
|
Provision (benefit)
for receivables
|
(6)
|
|
|
93
|
|
Deferred income
taxes
|
(384)
|
|
|
(38)
|
|
(Gains) losses on
divestitures, investments and other, net
|
(354)
|
|
|
(138)
|
|
Change in operating
assets and liabilities, net of effects of acquisitions and
divestitures:
|
|
|
|
Accounts
receivable
|
(107)
|
|
|
(107)
|
|
Inventories
|
(244)
|
|
|
84
|
|
Financing
receivables
|
1,577
|
|
|
(797)
|
|
Other
assets
|
(797)
|
|
|
96
|
|
Accounts
payable
|
(53)
|
|
|
141
|
|
Income taxes,
net
|
(549)
|
|
|
(322)
|
|
Accrued
compensation
|
643
|
|
|
(78)
|
|
Deferred
revenue
|
1,560
|
|
|
2,011
|
|
Other
liabilities
|
(46)
|
|
|
(110)
|
|
Net cash provided by
operating activities
|
15,454
|
|
|
15,426
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of
investments
|
(9,328)
|
|
|
(9,212)
|
|
Proceeds from sales of
investments
|
3,373
|
|
|
5,631
|
|
Proceeds from
maturities of investments
|
8,409
|
|
|
7,975
|
|
Acquisitions, net of
cash and cash equivalents acquired and divestitures
|
(7,038)
|
|
|
(327)
|
|
Purchases of
investments in privately held companies
|
(175)
|
|
|
(190)
|
|
Return of investments
in privately held companies
|
194
|
|
|
224
|
|
Acquisition of
property and equipment
|
(692)
|
|
|
(770)
|
|
Proceeds from sales of
property and equipment
|
28
|
|
|
179
|
|
Other
|
(56)
|
|
|
(10)
|
|
Net cash (used in)
provided by investing activities
|
(5,285)
|
|
|
3,500
|
|
Cash flows from
financing activities:
|
|
|
|
Issuances of common
stock
|
643
|
|
|
655
|
|
Repurchases of common
stock - repurchase program
|
(2,877)
|
|
|
(2,659)
|
|
Shares repurchased for
tax withholdings on vesting of restricted stock units
|
(636)
|
|
|
(727)
|
|
Short-term borrowings,
original maturities of 90 days or less, net
|
(5)
|
|
|
(3,470)
|
|
Repayments of
debt
|
(3,000)
|
|
|
(6,720)
|
|
Dividends
paid
|
(6,163)
|
|
|
(6,016)
|
|
Other
|
(1)
|
|
|
51
|
|
Net cash used in
financing activities
|
(12,039)
|
|
|
(18,886)
|
|
Net increase
(decrease) in cash, cash equivalents, and restricted
cash
|
(1,870)
|
|
|
40
|
|
Cash, cash
equivalents, and restricted cash, beginning of fiscal
year
|
11,812
|
|
|
11,772
|
|
Cash, cash
equivalents, and restricted cash, end of fiscal year
|
$
|
9,942
|
|
|
$
|
11,812
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
Cash paid for
interest
|
$
|
438
|
|
|
$
|
603
|
|
Cash paid for income
taxes, net
|
$
|
3,604
|
|
|
$
|
3,116
|
|
CISCO SYSTEMS,
INC.
|
REMAINING
PERFORMANCE OBLIGATIONS
|
(In millions,
except percentages)
|
|
|
July 31,
2021
|
|
May 1,
2021
|
|
July 25,
2020
|
|
Amount
|
|
Y/Y %
|
|
Amount
|
|
Y/Y %
|
|
Amount
|
|
Y/Y %
|
Product
|
$
|
13,270
|
|
|
18
|
%
|
|
$
|
11,903
|
|
|
15
|
%
|
|
$
|
11,261
|
|
|
17
|
%
|
Service
|
17,623
|
|
|
3
|
%
|
|
16,235
|
|
|
7
|
%
|
|
17,093
|
|
|
9
|
%
|
Total
|
$
|
30,893
|
|
|
9
|
%
|
|
$
|
28,138
|
|
|
10
|
%
|
|
$
|
28,354
|
|
|
12
|
%
|
CISCO SYSTEMS,
INC.
|
DEFERRED
REVENUE
|
(In
millions)
|
|
|
July 31,
2021
|
|
May 1,
2021
|
|
July 25,
2020
|
Deferred
revenue:
|
|
|
|
|
|
Product
|
$
|
9,416
|
|
|
$
|
8,698
|
|
|
$
|
7,895
|
|
Service
|
12,748
|
|
|
12,191
|
|
|
12,551
|
|
Total
|
$
|
22,164
|
|
|
$
|
20,889
|
|
|
$
|
20,446
|
|
Reported
as:
|
|
|
|
|
|
Current
|
$
|
12,148
|
|
|
$
|
11,492
|
|
|
$
|
11,406
|
|
Noncurrent
|
10,016
|
|
|
9,397
|
|
|
9,040
|
|
Total
|
$
|
22,164
|
|
|
$
|
20,889
|
|
|
$
|
20,446
|
|
CISCO SYSTEMS,
INC.
|
DIVIDENDS PAID AND
REPURCHASES OF COMMON STOCK
|
(In millions,
except per-share amounts)
|
|
|
|
DIVIDENDS
|
|
STOCK REPURCHASE
PROGRAM
|
|
TOTAL
|
Quarter
Ended
|
|
Per Share
|
|
Amount
|
|
Shares
|
|
Weighted-
Average
Price
per Share
|
|
Amount
|
|
Amount
|
Fiscal
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
July 31,
2021
|
|
$
|
0.37
|
|
|
$
|
1,562
|
|
|
15
|
|
|
$
|
53.30
|
|
|
$
|
791
|
|
|
$
|
2,353
|
|
May 1, 2021
|
|
$
|
0.37
|
|
|
$
|
1,560
|
|
|
10
|
|
|
$
|
48.71
|
|
|
$
|
510
|
|
|
$
|
2,070
|
|
January 23,
2021
|
|
$
|
0.36
|
|
|
$
|
1,521
|
|
|
19
|
|
|
$
|
42.82
|
|
|
$
|
801
|
|
|
$
|
2,322
|
|
October 24,
2020
|
|
$
|
0.36
|
|
|
$
|
1,520
|
|
|
20
|
|
|
$
|
40.44
|
|
|
$
|
800
|
|
|
$
|
2,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
July 25,
2020
|
|
$
|
0.36
|
|
|
$
|
1,525
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,525
|
|
April 25,
2020
|
|
$
|
0.36
|
|
|
$
|
1,519
|
|
|
25
|
|
|
$
|
39.71
|
|
|
$
|
981
|
|
|
$
|
2,500
|
|
January 25,
2020
|
|
$
|
0.35
|
|
|
$
|
1,486
|
|
|
18
|
|
|
$
|
46.71
|
|
|
$
|
870
|
|
|
$
|
2,356
|
|
October 26,
2019
|
|
$
|
0.35
|
|
|
$
|
1,486
|
|
|
16
|
|
|
$
|
48.91
|
|
|
$
|
768
|
|
|
$
|
2,254
|
|
CISCO SYSTEMS,
INC.
|
RECONCILIATIONS OF
GAAP TO NON-GAAP MEASURES
|
|
GAAP TO NON-GAAP
NET INCOME
|
(In
millions)
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
July 31,
2021
|
|
July 25,
2020
|
|
July 31,
2021
|
|
July 25,
2020
|
GAAP net
income
|
$
|
3,009
|
|
|
$
|
2,636
|
|
|
$
|
10,591
|
|
|
$
|
11,214
|
|
Adjustments to cost of
sales:
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
67
|
|
|
61
|
|
|
275
|
|
|
237
|
|
Amortization of
acquisition-related intangible assets
|
199
|
|
|
157
|
|
|
698
|
|
|
611
|
|
Acquisition-related/divestiture costs
|
1
|
|
|
—
|
|
|
4
|
|
|
3
|
|
Legal and
indemnification settlements/charges
|
—
|
|
|
—
|
|
|
43
|
|
|
4
|
|
Total adjustments to
GAAP cost of sales
|
267
|
|
|
218
|
|
|
1,020
|
|
|
855
|
|
Adjustments to
operating expenses:
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
357
|
|
|
332
|
|
|
1,460
|
|
|
1,307
|
|
Amortization of
acquisition-related intangible assets
|
79
|
|
|
33
|
|
|
215
|
|
|
141
|
|
Acquisition-related/divestiture costs
|
109
|
|
|
55
|
|
|
288
|
|
|
246
|
|
Significant asset
impairments and restructurings
|
8
|
|
|
127
|
|
|
886
|
|
|
481
|
|
Total adjustments to
GAAP operating expenses
|
553
|
|
|
547
|
|
|
2,849
|
|
|
2,175
|
|
Adjustments to
interest and other income (loss), net:
|
|
|
|
|
|
|
|
Acquisition-related/divestiture costs
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
(Gains) and losses on
equity investments
|
(154)
|
|
|
2
|
|
|
(285)
|
|
|
(97)
|
|
Total adjustments to
GAAP interest and other income (loss), net
|
(154)
|
|
|
2
|
|
|
(281)
|
|
|
(97)
|
|
Total adjustments to
GAAP income before provision for income taxes
|
666
|
|
|
767
|
|
|
3,588
|
|
|
2,933
|
|
Income tax effect of
non-GAAP adjustments
|
(199)
|
|
|
(175)
|
|
|
(702)
|
|
|
(722)
|
|
Significant tax
matters
|
76
|
|
|
166
|
|
|
159
|
|
|
233
|
|
Total adjustments to
GAAP provision for income taxes
|
(123)
|
|
|
(9)
|
|
|
(543)
|
|
|
(489)
|
|
Non-GAAP net
income
|
$
|
3,552
|
|
|
$
|
3,394
|
|
|
$
|
13,636
|
|
|
$
|
13,658
|
|
CISCO SYSTEMS,
INC.
|
RECONCILIATIONS OF
GAAP TO NON-GAAP MEASURES
|
|
GAAP TO NON-GAAP
EPS
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
July 31,
2021
|
|
July 25,
2020
|
|
July 31,
2021
|
|
July 25,
2020
|
GAAP EPS
|
$
|
0.71
|
|
|
$
|
0.62
|
|
|
$
|
2.50
|
|
|
$
|
2.64
|
|
Adjustments to
GAAP:
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
0.10
|
|
|
0.09
|
|
|
0.41
|
|
|
0.36
|
|
Amortization of
acquisition-related intangible assets
|
0.07
|
|
|
0.04
|
|
|
0.22
|
|
|
0.18
|
|
Acquisition-related/divestiture costs
|
0.03
|
|
|
0.01
|
|
|
0.07
|
|
|
0.06
|
|
Legal and
indemnification settlements/charges
|
—
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
Significant asset
impairments and restructurings
|
—
|
|
|
0.03
|
|
|
0.21
|
|
|
0.11
|
|
(Gains) and losses on
equity investments
|
(0.04)
|
|
|
—
|
|
|
(0.07)
|
|
|
(0.02)
|
|
Income tax effect of
non-GAAP adjustments
|
(0.05)
|
|
|
(0.04)
|
|
|
(0.17)
|
|
|
(0.17)
|
|
Significant tax
matters
|
0.02
|
|
|
0.04
|
|
|
0.04
|
|
|
0.05
|
|
Non-GAAP
EPS
|
$
|
0.84
|
|
|
$
|
0.80
|
|
|
$
|
3.22
|
|
|
$
|
3.21
|
|
|
Amounts may not sum
due to rounding.
|
CISCO SYSTEMS,
INC.
|
RECONCILIATIONS OF
GAAP TO NON-GAAP MEASURES
|
|
GROSS MARGINS,
OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME
(LOSS), NET, AND NET INCOME
|
(In millions,
except percentages)
|
|
|
Three Months
Ended
|
|
July 31,
2021
|
|
Product
Gross
Margin
|
|
Service
Gross
Margin
|
|
Total
Gross
Margin
|
|
Operating
Expenses
|
|
Y/Y
|
|
Operating
Income
|
|
Y/Y
|
|
Interest
and
other
income
(loss),
net
|
|
Net
Income
|
|
Y/Y
|
GAAP
amount
|
$
|
6,088
|
|
|
$
|
2,256
|
|
|
$
|
8,344
|
|
|
$
|
4,769
|
|
|
8%
|
|
$
|
3,575
|
|
|
10%
|
|
$
|
160
|
|
|
$
|
3,009
|
|
|
14%
|
% of
revenue
|
62.7
|
%
|
|
66.2
|
%
|
|
63.6
|
%
|
|
36.3
|
%
|
|
|
|
27.2
|
%
|
|
|
|
1.2
|
%
|
|
22.9
|
%
|
|
|
Adjustments to GAAP
amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
24
|
|
|
43
|
|
|
67
|
|
|
357
|
|
|
|
|
424
|
|
|
|
|
—
|
|
|
424
|
|
|
|
Amortization of
acquisition-related intangible assets
|
199
|
|
|
—
|
|
|
199
|
|
|
79
|
|
|
|
|
278
|
|
|
|
|
—
|
|
|
278
|
|
|
|
Acquisition/divestiture-related costs
|
1
|
|
|
—
|
|
|
1
|
|
|
109
|
|
|
|
|
110
|
|
|
|
|
—
|
|
|
110
|
|
|
|
Significant asset
impairments and restructurings
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
|
|
8
|
|
|
|
|
—
|
|
|
8
|
|
|
|
(Gains) and losses on
equity investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(154)
|
|
|
(154)
|
|
|
|
Income tax
effect/significant tax matters
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
(123)
|
|
|
|
Non-GAAP
amount
|
$
|
6,312
|
|
|
$
|
2,299
|
|
|
$
|
8,611
|
|
|
$
|
4,216
|
|
|
8%
|
|
$
|
4,395
|
|
|
10%
|
|
$
|
6
|
|
|
$
|
3,552
|
|
|
5%
|
% of
revenue
|
65.0
|
%
|
|
67.4
|
%
|
|
65.6
|
%
|
|
32.1
|
%
|
|
|
|
33.5
|
%
|
|
|
|
—
|
%
|
|
27.1
|
%
|
|
|
|
Three Months
Ended
|
|
July 25,
2020
|
|
Product
Gross
Margin
|
|
Service
Gross
Margin
|
|
Total
Gross
Margin
|
|
Operating
Expenses
|
|
Operating
Income
|
|
Interest
and
other
income
(loss),
net
|
|
Net
Income
|
GAAP
amount
|
$
|
5,403
|
|
|
$
|
2,281
|
|
|
$
|
7,684
|
|
|
$
|
4,437
|
|
|
$
|
3,247
|
|
|
$
|
59
|
|
|
$
|
2,636
|
|
% of
revenue
|
61.2
|
%
|
|
68.7
|
%
|
|
63.2
|
%
|
|
36.5
|
%
|
|
26.7
|
%
|
|
0.5
|
%
|
|
21.7
|
%
|
Adjustments to GAAP
amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
24
|
|
|
37
|
|
|
61
|
|
|
332
|
|
|
393
|
|
|
—
|
|
|
393
|
|
Amortization of
acquisition-related intangible assets
|
157
|
|
|
—
|
|
|
157
|
|
|
33
|
|
|
190
|
|
|
—
|
|
|
190
|
|
Acquisition/divestiture-related costs
|
—
|
|
|
—
|
|
|
—
|
|
|
55
|
|
|
55
|
|
|
—
|
|
|
55
|
|
Significant asset
impairments and restructurings
|
—
|
|
|
—
|
|
|
—
|
|
|
127
|
|
|
127
|
|
|
—
|
|
|
127
|
|
(Gains) and losses on
equity investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
Income tax
effect/significant tax matters
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9)
|
|
Non-GAAP
amount
|
$
|
5,584
|
|
|
$
|
2,318
|
|
|
$
|
7,902
|
|
|
$
|
3,890
|
|
|
$
|
4,012
|
|
|
$
|
61
|
|
|
$
|
3,394
|
|
% of
revenue
|
63.2
|
%
|
|
69.8
|
%
|
|
65.0
|
%
|
|
32.0
|
%
|
|
33.0
|
%
|
|
0.5
|
%
|
|
27.9
|
%
|
|
Amounts may not sum
and percentages may not recalculate due to rounding.
|
CISCO
SYSTEMS, INC.
|
RECONCILIATIONS OF
GAAP TO NON-GAAP MEASURES
|
|
GROSS MARGINS,
OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME
(LOSS), NET, AND NET INCOME
|
(In millions,
except percentages)
|
|
|
Fiscal Year
Ended
|
|
July 31,
2021
|
|
Product
Gross
Margin
|
|
Service
Gross
Margin
|
|
Total
Gross
Margin
|
|
Operating
Expenses
|
|
Y/Y
|
|
Operating
Income
|
|
Y/Y
|
|
Interest
and
other
income
(loss),
net
|
|
Net
Income
|
|
Y/Y
|
GAAP
amount
|
$
|
22,714
|
|
|
$
|
9,180
|
|
|
$
|
31,894
|
|
|
$
|
19,061
|
|
|
6%
|
|
$
|
12,833
|
|
|
(6)%
|
|
$
|
429
|
|
|
$
|
10,591
|
|
|
(6)%
|
% of
revenue
|
63.1
|
%
|
|
66.5
|
%
|
|
64.0
|
%
|
|
38.3
|
%
|
|
|
|
25.8
|
%
|
|
|
|
0.9
|
%
|
|
21.3
|
%
|
|
|
Adjustments to GAAP
amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
99
|
|
|
176
|
|
|
275
|
|
|
1,460
|
|
|
|
|
1,735
|
|
|
|
|
—
|
|
|
1,735
|
|
|
|
Amortization of
acquisition-related intangible assets
|
698
|
|
|
—
|
|
|
698
|
|
|
215
|
|
|
|
|
913
|
|
|
|
|
—
|
|
|
913
|
|
|
|
Acquisition/divestiture-related costs
|
3
|
|
|
1
|
|
|
4
|
|
|
288
|
|
|
|
|
292
|
|
|
|
|
4
|
|
|
296
|
|
|
|
Legal and
indemnification settlements/charges
|
43
|
|
|
—
|
|
|
43
|
|
|
—
|
|
|
|
|
43
|
|
|
|
|
—
|
|
|
43
|
|
|
|
Significant asset
impairments and restructurings
|
—
|
|
|
—
|
|
|
—
|
|
|
886
|
|
|
|
|
886
|
|
|
|
|
—
|
|
|
886
|
|
|
|
(Gains) and losses on
equity investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(285)
|
|
|
(285)
|
|
|
|
Income tax
effect/significant tax matters
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
(543)
|
|
|
|
Non-GAAP
amount
|
$
|
23,557
|
|
|
$
|
9,357
|
|
|
$
|
32,914
|
|
|
$
|
16,212
|
|
|
2%
|
|
$
|
16,702
|
|
|
—%
|
|
$
|
148
|
|
|
$
|
13,636
|
|
|
—%
|
% of
revenue
|
65.4
|
%
|
|
67.8
|
%
|
|
66.1
|
%
|
|
32.5
|
%
|
|
|
|
33.5
|
%
|
|
|
|
0.3
|
%
|
|
27.4
|
%
|
|
|
|
Fiscal Year
Ended
|
|
July 25,
2020
|
|
Product
Gross
Margin
|
|
Service
Gross
Margin
|
|
Total
Gross
Margin
|
|
Operating
Expenses
|
|
Operating
Income
|
|
Interest
and
other
income
(loss),
net
|
|
Net
Income
|
GAAP
amount
|
$
|
22,779
|
|
|
$
|
8,904
|
|
|
$
|
31,683
|
|
|
$
|
18,063
|
|
|
$
|
13,620
|
|
|
$
|
350
|
|
|
$
|
11,214
|
|
% of
revenue
|
63.3
|
%
|
|
66.8
|
%
|
|
64.3
|
%
|
|
36.6
|
%
|
|
27.6
|
%
|
|
0.7
|
%
|
|
22.7
|
%
|
Adjustments to GAAP
amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
93
|
|
|
144
|
|
|
237
|
|
|
1,307
|
|
|
1,544
|
|
|
—
|
|
|
1,544
|
|
Amortization of
acquisition-related intangible assets
|
611
|
|
|
—
|
|
|
611
|
|
|
141
|
|
|
752
|
|
|
—
|
|
|
752
|
|
Acquisition/divestiture-related costs
|
—
|
|
|
3
|
|
|
3
|
|
|
246
|
|
|
249
|
|
|
—
|
|
|
249
|
|
Legal and
indemnification settlements
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
Significant asset
impairments and restructurings
|
—
|
|
|
—
|
|
|
—
|
|
|
481
|
|
|
481
|
|
|
—
|
|
|
481
|
|
(Gains) and losses on
equity investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(97)
|
|
|
(97)
|
|
Income tax
effect/significant tax matters
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(489)
|
|
Non-GAAP
amount
|
$
|
23,487
|
|
|
$
|
9,051
|
|
|
$
|
32,538
|
|
|
$
|
15,888
|
|
|
$
|
16,650
|
|
|
$
|
253
|
|
|
$
|
13,658
|
|
% of
revenue
|
65.3
|
%
|
|
67.9
|
%
|
|
66.0
|
%
|
|
32.2
|
%
|
|
33.8
|
%
|
|
0.5
|
%
|
|
27.7
|
%
|
|
Amounts may not sum
and percentages may not recalculate due to rounding.
|
CISCO SYSTEMS,
INC.
|
RECONCILIATIONS OF
GAAP TO NON-GAAP MEASURES
|
|
EFFECTIVE TAX
RATE
|
(In
percentages)
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
July 31,
2021
|
|
July 25,
2020
|
|
July 31,
2021
|
|
July 25,
2020
|
GAAP effective tax
rate
|
19.4
|
%
|
|
20.3
|
%
|
|
20.1
|
%
|
|
19.7
|
%
|
Total adjustments to
GAAP provision for income taxes
|
(0.1)
|
%
|
|
(3.6)
|
%
|
|
(1.0)
|
%
|
|
(0.5)
|
%
|
Non-GAAP effective
tax rate
|
19.3
|
%
|
|
16.7
|
%
|
|
19.1
|
%
|
|
19.2
|
%
|
GAAP TO NON-GAAP
GUIDANCE
|
|
Q1 FY 2022
|
|
Gross
Margin
Rate
|
|
Operating
Margin
Rate
|
|
Earnings
per
Share
(1)
|
GAAP
|
|
61.5% -
62.5%
|
|
25% - 26%
|
|
$0.61 -
$0.66
|
Estimated adjustments
for:
|
|
|
|
|
|
|
Share-based
compensation expense
|
|
0.5%
|
|
3.5%
|
|
$0.08 -
$0.09
|
Amortization of
acquisition-related intangible assets and
acquisition/divestiture-related costs
|
|
1.5%
|
|
3.0%
|
|
$0.07 -
$0.08
|
Significant asset
impairments and restructurings
|
|
—
|
|
—
|
|
$0.00 -
$0.01
|
Non-GAAP
|
|
63.5% -
64.5%
|
|
31.5% -
32.5%
|
|
$0.79 -
$0.81
|
|
|
|
|
|
|
|
|
FY 2022
|
|
Earnings
per
Share
(1)
|
GAAP
|
|
$2.72 -
$2.84
|
Estimated adjustments
for:
|
|
|
Share-based
compensation expense
|
|
$0.35 -
$0.37
|
Amortization of
acquisition-related intangible assets and
acquisition/divestiture-related costs
|
|
$0.26 -
$0.28
|
Significant asset
impairments and restructurings
|
|
$0.00 -
$0.01
|
Non-GAAP
|
|
$3.38 -
$3.45
|
|
|
|
|
(1)
Estimated adjustments to GAAP earnings per share are shown after
income tax effects.
|
|
Except as noted
above, this guidance does not include the effects of any future
acquisitions/divestitures, asset impairments, restructurings and
significant tax matters or other events, which may or may not be
significant unless specifically stated.
|
Forward Looking Statements, Non-GAAP Information and
Additional Information
This release may be deemed to contain
forward-looking statements, which are subject to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include, among other things,
statements regarding future events (such as the continued momentum
in our business, the demand for our technology, our ability to help
the acceleration of our customers' digital transformation, and the
continuation of our business model transformation to more recurring
revenue) and the future financial performance of Cisco (including
the guidance for Q1 FY 2022 and full year FY 2022) that involve
risks and uncertainties. Readers are cautioned that these
forward-looking statements are only predictions and may differ
materially from actual future events or results due to a variety of
factors, including: the impact of the COVID-19 pandemic and related
public health measures; business and economic conditions and growth
trends in the networking industry, our customer markets and various
geographic regions; global economic conditions and uncertainties in
the geopolitical environment; overall information technology
spending; the growth and evolution of the Internet and levels of
capital spending on Internet-based systems; variations in customer
demand for products and services, including sales to the service
provider market and other customer markets; the return on our
investments in certain priorities, key growth areas, and in certain
geographical locations, as well as maintaining leadership in
infrastructure platforms and services; the timing of orders and
manufacturing and customer lead times; changes in customer order
patterns or customer mix; insufficient, excess or obsolete
inventory; variability of component costs; variations in sales
channels, product costs or mix of products sold; our ability to
successfully acquire businesses and technologies and to
successfully integrate and operate these acquired businesses and
technologies; our ability to achieve expected benefits of our
partnerships; increased competition in our product and service
markets, including the data center market; dependence on the
introduction and market acceptance of new product offerings and
standards; rapid technological and market change; manufacturing and
sourcing risks; product defects and returns; litigation involving
patents, other intellectual property, antitrust, stockholder and
other matters, and governmental investigations; our ability to
achieve the benefits of restructurings and possible changes in the
size and timing of related charges; cyber-attacks, data breaches or
malware; vulnerabilities and critical security defects; terrorism;
natural catastrophic events; any other pandemic or epidemic; our
ability to achieve the benefits anticipated from our investments in
sales, engineering, service, marketing and manufacturing
activities; our ability to recruit and retain key personnel; our
ability to manage financial risk, and to manage expenses during
economic downturns; risks related to the global nature of our
operations, including our operations in emerging markets; currency
fluctuations and other international factors; changes in provision
for income taxes, including changes in tax laws and regulations or
adverse outcomes resulting from examinations of our income tax
returns; potential volatility in operating results; and other
factors listed in Cisco's most recent reports on Forms 10-Q and
10-K filed on May 25, 2021, and
September 3, 2020, respectively. The financial information
contained in this release should be read in conjunction with the
consolidated financial statements and notes thereto included in
Cisco's most recent reports on Forms 10-Q and 10-K as each may be
amended from time to time. Cisco's results of operations for the
three months and the year ended July 31, 2021 are not
necessarily indicative of Cisco's operating results for any future
periods. Any projections in this release are based on limited
information currently available to Cisco, which is subject to
change. Although any such projections and the factors influencing
them will likely change, Cisco will not necessarily update the
information, since Cisco will only provide guidance at certain
points during the year. Such information speaks only as of the date
of this release.
This release includes non-GAAP net income, non-GAAP gross
margins, non-GAAP operating expenses, non-GAAP operating income and
margin, non-GAAP effective tax rates, non-GAAP interest and other
income (loss), net, and non-GAAP net income per share data for the
periods presented. It also includes future estimated ranges for
gross margin, operating margin, tax provision rate and EPS on a
non-GAAP basis.
These non-GAAP measures are not in accordance with, or an
alternative for, measures prepared in accordance with generally
accepted accounting principles and may be different from non-GAAP
measures used by other companies. In addition, these non-GAAP
measures are not based on any comprehensive set of accounting rules
or principles. Cisco believes that non-GAAP measures have
limitations in that they do not reflect all of the amounts
associated with Cisco's results of operations as determined in
accordance with GAAP and that these measures should only be used to
evaluate Cisco's results of operations in conjunction with the
corresponding GAAP measures.
Cisco believes that the presentation of non-GAAP measures when
shown in conjunction with the corresponding GAAP measures, provides
useful information to investors and management regarding financial
and business trends relating to its financial condition and its
historical and projected results of operations.
For its internal budgeting process, Cisco's management uses
financial statements that do not include, when applicable,
share-based compensation expense, amortization of
acquisition-related intangible assets,
acquisition-related/divestiture costs, significant asset
impairments and restructurings, significant litigation settlements
and other contingencies, gains and losses on equity investments,
the income tax effects of the foregoing and significant tax
matters. Cisco's management also uses the foregoing non-GAAP
measures, in addition to the corresponding GAAP measures, in
reviewing the financial results of Cisco. In prior periods, Cisco
has excluded other items that it no longer excludes for purposes of
its non-GAAP financial measures. From time to time in the future
there may be other items that Cisco may exclude for purposes of its
internal budgeting process and in reviewing its financial results.
For additional information on the items excluded by Cisco from one
or more of its non-GAAP financial measures, refer to the Form 8-K
regarding this release furnished today to the Securities and
Exchange Commission.
About Cisco
Cisco (Nasdaq: CSCO) is the worldwide leader in
technology that powers the Internet. Cisco inspires new
possibilities by reimagining your applications, securing your data,
transforming your infrastructure, and empowering your
teams for a global and inclusive future. Discover more at
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Copyright © 2021 Cisco and/or its affiliates. All rights
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of the word partner does not imply a partnership relationship
between Cisco and any other company. This document is Cisco Public
Information.
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Press
Contact:
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|
Investor Relations
Contact:
|
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|
|
Marilyn
Mora
|
Cisco
|
|
Cisco
|
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|
|
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|
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|
|
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SOURCE Cisco Systems, Inc.